Dhaka-EIB sign 396m euro accord for renewable energy projects

The European Investment Bank (EIB) and Bangladesh signed agreements worth 395 million euro to implement seven renewable energy projects in Bangladesh for a sustainable green transition of Bangladesh's power sector.

Bangladesh Prime Minister Sheikh Hasina and the European Commission Chairman Ursula von der Leyen witnessed the signing of seven renewable energy projects and other agreements at the European Commission Headquarters, Brussels on Wednesday.

Representatives' of the Bangladesh government's Economic Relations Department (ERD) and the European Investment Bank have signed the agreement on behalf of their respective sides.

"We are confident that this initiative will enable developing countries such as Bangladesh to fight climate change, to address infrastructure gaps, invest in renewable energy, digital innovation, healthcare, education and much more. The Global Gateway is a sign of friendship, of partnership, of trust, of symbiotic interdependence," Prime Minister Sheikh Hasina said.

Speaking on the occasion, President Ursula von der Leyen said, "the EU and Bangladesh have been reliable and trusted partners for 50 years. Now, we are taking this partnership even further, to reap the opportunities of the green transition under Global Gateway. The European Commission, the EIB and Bangladesh will join forces to support renewable energy and tackle climate change. This 400 million euro investment will make a difference for the people of Bangladesh and its economy."

Focusing on the renewable projects, Mohammad Hossain Director General of Power Cell told the Daily Observer on Wednesday The operation is expected to contribute to the installation of an estimated 750 MW of new renewable energy capacity in Bangladesh.

 "The seven Renewable projects are state owned EGCB's 82.2 MW Sonagazi, Nowakhali solar power project, 100 MW another solar project at the same area, BPDB owned 100 MW solar project and 120 MW wind power project at Raipura, Norsigndhi and Parki beach, Chottagram, EGCB owned 50.4 MW solar at Gazaria and 700 MW solar power project at coastal areas of Chottagram owned by the Bangladesh Army lead organization (it is still under consideration as the areas yet to be air marked)," following the signing he told the Daily Observer.

A grant agreement of 45 million euro for Bangladesh's renewable energy sector also signed between the European Commission and the European Investment Bank. However, a 12 million euro grant agreement was also signed for Bangladesh's renewable energy sector as well, he added.

The 45 million euro will provide for technical assistance and an investment grant, in addition, an accompanying Green Energy Transition project worth 12 million euro which includes 7 million euro that is co-financed by Germany aims to work on policy, legal framework and investment climate to facilitate an inclusive green energy transition.

Five additional cooperation actions, worth 70 million euro, supporting education, decent work, green construction, e-governance and the prevention of gender-based violence were also launched.

The Global Gateway strategy embodies a Team Europe approach that brings together the European Union, EU Member States, and European development finance institutions. However, they aim to mobilise up to 300 billion euro in public and private investments from 2021 to 2027, creating essential links rather than dependencies, and closing the global investment gap.

"The EU and Bangladesh have been reliable and trusted partners for 50 years. Now, we are taking this partnership even further, to reap the opportunities of the green transition under Global Gateway. The European Commission, the EIB and Bangladesh will join forces to support renewable energy and tackle climate change. This 400 million euro investment will make a difference for the people of Bangladesh and its economy". Speaking in Brussels, President Ursula von der Leyen said.OL 5